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What is the purpose of a good guy clause?

When negotiating a commercial real estate lease for office space, you may be asked by a landlord to agree to a good guy guarantee. This good guy guarantee is a special type of personal guarantee that provides protection to landlords in the event a tenant goes into default or is otherwise unable to continue.

What is the difference between good guy guarantee and personal guarantee?

A good guy clause is a limited personal guarantee. The distinction between a good guy clause and a traditional/full personal guarantee is that in a good guy clause an individuals personal liability ends when the space is vacated.

What is the difference between good guy guarantee and personal guarantee?

A good guy clause is a limited personal guarantee. The distinction between a good guy clause and a traditional/full personal guarantee is that in a good guy clause an individuals personal liability ends when the space is vacated.

What does a good guy clause look like?

Its a legal clause that if for any reason the tenant becomes unable to continue paying rent for the space, that tenant will give the landlord proper notification (usually three months notice), vacate the premises, and pay all rental fees up until the date of departure.

What is a standard good guy clause?

A good guy clause, typically found in rental agreements in New York City, is a provision that allows a tenant to be released from the liability of completing the agreed upon rental period, assuming the tenant vacates the rented space and leaves it in favorable condition.

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